Saving money is a skill that needs to be learned. Sadly, many Americans today are more than a little behind.
We live in tumultuous times. It’s not enough to just have vague plans about the future…you need to have a concrete strategy that involves splitting and allocating your funds in the right places to keep you secure no matter what happens. The subject of retirement is a difficult one, in particular. Many simply don’t have the tools needed to turn their regular paycheck into a net to catch them should the worst come to pass, much less provide them with security during their golden years. If you’ve found yourself wondering whether or not a financial planner could help you during this difficult period, look no further.
You are more than capable of creating an investment plan that compliments your budget and allows you to save for the future. Here’s how.
Where do you stand when it comes to retirement planning and meeting with a financial planner regularly? Asking this question honestly is your first step toward finding a means of saving up each month, little-by-little, and creating a foundation that will support you decades down the road. Americans today are still stumbling in this area, failing to recognize the importance of saving or simply not having enough to budget flexibly. One study by The Associated Press-NORC Center For Public Affairs Research found two-thirds of Americans would struggle to scrounge up just $1,000 in an emergency.
These obstacles are created by numerous factors, with debt being high on the list. A recent study found a little over 40% of Millennial employees having student loans, with another 80% stating their student loans to have either a moderate or severe impact on their ability to meet their other financial goals. Medical debt, credit card debt and mounting insurance costs are all other forms that get in the way of proper financial planning. It’s no surprise retirement is often well out of sight and out of mind, with many convinced it’s a problem they can save up for later…if they save up at all.
Even those that want to save up for retirement are working their way around obstacles. Around 45% of Americans have a rainy day fund, thanks to FINRA’s National Financial Capability Study, but this fund can find itself dried up prematurely due to accidents or mounting debt fees. Some attempt to find a happy balance and work a little later, but this is neither common nor feasible. Around 70% of workers expect to work for pay in retirement, but just 25% of retirees will actually do so. Financial planning is more important than ever.
Financial stress, interestingly enough, is one of the leading causes that keep people from asking a financial planner for help. One study saw financial stress in 2016 impacting over 50% of employees on a regular basis. Another study by the National Endowment For Financial Education saw just 25% of Millennials demonstrating basic financial literacy, which included daily budgeting, rainy day funds, managing debt, building good credit score and planning for retirement. The Global Financial Literacy Excellence Center partnered with George Washington University, however, and found a more optimistic survey seeing 70% of Millennials rating their financial literacy highly.
An investment plan gives shape to your goals. It keeps them from becoming nebulous wants and needs that don’t actually go anywhere, leaving you stranded with no obvious way out. You can finally start working toward that certified pre-owned used car you need to run errands. You can figure out how to consolidate your debt and get back on your own two feet again. Financial advisers are familiar with all the different details that go into struggling to save up properly and are more than able to provide perspective that provides results. All it takes is taking that first step forward.
Think retirement planning is beyond your ability? Look up a financial planner in your area and ask for a consultation this year.